Author: Willis Bennett

Short Term Range Happening

Daily Continuation

It’s only a couple of days since last week– but there seems to be a mini-range developing in the June trade between $2.20 – $2.40. Continue to play that until the market tells you that is over.

To read The Daily Call you must be a subscriber (Current members sign in here. ) Start your subscription today.

Gap Inches Smaller

Daily Continuous

Yesterday brought on some gains that lessened the gap from earlier in the year, trading to a high of $2.377 at the end of the day’s trade. Spoke about closing the gap perhaps this week — all I can say now is that if it doesn’t close this week – its going to miss a great opportunity. Having a gap with this much space can make the process slow and piece by piece.

Major Support:, $1.595, $1.52-$1.511, $1.481, $1.312
Minor Support : $2.12, $2.00, $1.967- $1.94
Major Resistance: $2.168-$2.411 (gap),

To read The Daily Call you must be a subscriber (Current members sign in here. ) Start your subscription today.

Consolidation Begets Small Rally

Weekly Continuation

The consolidation pattern that permeated the market for the last two months (with slight advances) has developed a solid base for the summer. June reversed higher from support and ended the week strong (above the March/April highs, the continuation 20 – week SMA (for the first time since the January high and the historically important January low). The rally was extended toward resistance defined by the December low, 38.2% retracement of the decline from the January high to the March Q I low and the wide “expiration” gap left following February expiration. For three days June traded around that resistance, each day finding support at the upper boundary of the trading range that June defined between mid – March and the beginning of May. On Thursday the prompt reversed higher from that support and traded to the highest price since late January (with strong volume (the highest daily turnover since 02/21).

June settled back from a higher high on Friday, $2.344, to end the week at $2.252 (the highest weekly close since 01/26), still well short of closing the aforementioned “expiration” gap (a fraction of which remains open between $2.344 and $2.411) and 50% retracement of the Q I decline ($2.437). Given increasing volume and what appears to be relatively modest short covering there is a significant likelihood that June won’t turn back down until the resistance above is seriously challenged.

To read The Daily Call you must be a subscriber (Current members sign in here. ) Start your subscription today.

Biting Into the Gap Pauses — For Now

Daily Continuous

Go into some of the technical considerations from last week’s trade action in the Weekly section. Suffice to say, as expressed last week in the Daily’s the gap from January got gradually chewed up during the week. It still exists and would expect this to be closed during the month. Suggest working within the small trading range for June gas for now ($2.12-$2.34).

Major Support:, $1.595, $1.52-$1.511, $1.481, $1.312
Minor Support : $2.12, $2.00, $1.967- $1.94
Major Resistance: $2.168-$2.411 (gap), $2.26

To read The Daily Call you must be a subscriber (Current members sign in here. ) Start your subscription today.

Additional Bites Into Gap

Daily Continuous

The rally continued after the storage release with prices testing near term support only to rally and bite into the gap from January. Playing with length seems to be profitable – but care and respect should be given to the gap closing– should it occur. The bias continues to confirm the change but time will tell and the weekly close should provide my more information.

Major Support:, $1.595, $1.52-$1.511, $1.481, $1.312
Minor Support : $2.12, $2.00, $1.967- $1.94
Major Resistance: $2.168-$2.411 (gap), $2.26

Important Storage Release

Daily Continuous

This week’s release of data is likely one of the last reports that will not have the effects of heat in TX, OK and the southern regions as temps head higher into the late spring and summer months. The timing, from a technical perspective, is very good as the market seems to be consolidating the gains from the end of April and should test the area from $2.12-$2.00, confirming the base zone.

Major Support:, $1.595, $1.52-$1.511, $1.481, $1.312
Minor Support : $2.12, $2.00, $1.967- $1.94
Major Resistance: $2.168-$2.411 (gap), $2.26

To read The Daily Call you must be a subscriber (Current members sign in here. ) Start your subscription today.

May Be Building a Near Term Base

Daily Continuous

Tight range yesterday– setting up for potentially more consolidation trade which will gather the break out potential. A consolidation process that breaks down will need to deal with the support area between $2.00-$1.90 that has already had several tests and failures.

Major Support:, $1.595, $1.52-$1.511, $1.481, $1.312
Minor Support : $2.00, $1.967- $1.94
Major Resistance: $2.148, $2.168-$2.411 (gap)

To read The Daily Call you must be a subscriber (Current members sign in here. ) Start your subscription today.

A Little More of the Gap Close

Daily Continuation

It looks like a small bite at a time as the market chews into the gap from last January. regardless of the bites the price action is different with the bias more positive, Build positions on retrace action but keep in mind, the overall trend remains bearish – though the current trade is more bullish.

Major Support:, $1.595, $1.52-$1.511, $1.481, $1.312
Minor Support : $2.00, $1.967- $1.94
Major Resistance: $2.148, $2.168-$2.411 (gap)

To read The Daily Call you must be a subscriber (Current members sign in here. ) Start your subscription today.

Technically — A Bias Conversion

Daily Continuous

Discuss the effects of last week’s trade in the Weekly section, but suffice to say, that was a bullish trend to trade during the week. Not sure we are going to close the gap from this Jan but they may try to chew into that gap.

Major Support:, $1.595, $1.52-$1.511, $1.481, $1.312
Minor Support : $2.00, $1.967- $1.94
Major Resistance: $2.148, $2.168-$2.411 (gap)

To read The Daily Call you must be a subscriber (Current members sign in here. ) Start your subscription today.

Prices Remain Firm

Weekly Continuous

June traded through and closed above the April high ($2.092) making it the 15th time in 17 years that prompt gas has traded through the calendar April high during May. June also closed above declining trend line resistance, which will likely now serve as support as well as the March high and above the continuation 20 – week SMA for the first time since first two Fridays of 2024.

June’s rally was impressive, but it stopped short of narrowing the “expiration” gap left following February expiration and well short of well – defined conventional resistance presented by the December low closing above that gap would approximately equal the average of historical rallies from Q1 lows to Q2 highs. Volume was a little higher this week (a technically positive point, but just equaled the 20 – week average). Open interest was higher as prompt gas rallied, also a technical positive.

To read The Daily Call you must be a subscriber (Current members sign in here. ) Start your subscription today.